If oranges are an elastic good, raising the price will tend to lead to... a) lower revenue. b) lower costs. c) higher costs. d) higher revenue.

Raising the price of an elastic good like oranges typically leads to a decrease in total revenue. This is because consumers are sensitive to price changes; when the price goes up, the quantity demanded usually goes down significantly, resulting in less overall sales revenue. Think of it as a seesaw—when one side goes up, the other side drops! In the real world, this concept is crucial for businesses. For instance, a citrus producer facing an elastic demand for oranges might reconsider price hikes during peak supply seasons. Instead, they might choose to maintain or even lower prices to attract more customers and boost overall sales, embracing the idea that volume can sometimes trump margins. It's all about balancing that revenue seesaw!